IREN reported rapid progress in its transformation from Bitcoin mining toward AI infrastructure, with contracted annualized run-rate revenue reaching $4 billion while fiscal-year AI Cloud Services revenue increased nearly eightfold.
The company said it has $4 billion of contracted ARR for its 2026 capacity, with approximately $1 billion of ARR currently operating.
IREN’s available 2026 AI capacity is now largely sold out.
For 2027, the company is in late-stage discussions with multiple potential customers covering what it described as a significant portion of planned capacity. Customer and financing discussions for 2028 are also underway.
The company recently signed another multi-year AI Cloud contract with an unnamed leading frontier AI lab.
Other recently signed customers include Cohere, Prometheus, Perplexity, Figure AI, Fal AI and Higgsfield AI.
IREN is also securing renewals and expansions with existing customers and says it is deliberately spreading capacity across hyperscalers, enterprises, AI developers and frontier labs.
The transition is increasingly visible in reported financial results.
Fiscal 2026 AI Cloud Services revenue increased to $128.8 million from $16.4 million, representing growth of roughly 685%, or nearly eightfold.
Bitcoin Mining revenue increased to $578.2 million from $484.6 million.
Total revenue increased 41% to $707 million from $501 million.
Fourth-quarter AI Cloud Services revenue reached $70.5 million, up more than 100% sequentially from $33.6 million.
However, the company’s transition also generated substantial accounting costs.
IREN reported a fiscal 2026 net loss of $702.6 million compared with $86.9 million of net income in fiscal 2025.
The year included approximately $638.8 million of non-cash asset impairments, primarily associated with decommissioning Bitcoin mining equipment as sites are converted for AI Cloud growth.
IREN is simultaneously securing financing designed to reduce the amount of equity capital required for its AI buildout.
The company arranged $2.8 billion of new GPU financing for non-investment-grade customer deployments, including a $2.4 billion facility led by Blue Owl and Pacific Investment Management Company-advised investors.
That financing funds approximately 90% of the associated GPU capex.
A separate $3.6 billion investment-grade GPU financing connected with IREN’s Microsoft contract carries a weighted average interest rate of approximately 6%. Together with customer prepayments, it funds approximately 96% of associated GPU capex.
The economics of new contracts are also improving.
IREN said recent three-year contracts generate more than $20 million of revenue per megawatt of IT capacity, resulting in an estimated payback period of approximately two years.
Current discussions are occurring at approximately $25 million of revenue per megawatt.
Recent customers have also agreed to prepayments equivalent to 45% to 55% of estimated GPU capex.
IREN cautions that ARR is an operating metric rather than GAAP revenue. Recognized revenue can be materially different depending on commissioning, testing, utilization, customer acceptance and accounting requirements.
Still, the combination of $4 billion of contracted ARR, sold-out 2026 capacity and rapidly scaling AI Cloud revenue illustrates how dramatically IREN’s business mix could change as its infrastructure enters production.
KEY QUOTES:
“Our 2026 capacity is largely sold out. This includes Horizon 1, the first of four leading-edge liquid cooled GPU deployments that we successfully delivered to Microsoft this month.”
“As our platform has scaled and our market position has strengthened, we have attracted leading customers and secured stronger pricing, more attractive contract terms and improved paybacks.”
“We have spent years assembling what is difficult to replicate: power, land, data centers, compute, software and people. This is only the beginning.”
Daniel Roberts, Co-Founder and Co-Chief Executive Officer of IREN
